IRA Gifts
IRA Qualified Charitable Distributions During Life
IRA Qualified Charitable Distributions (QCDs) allow donors, age 70 ½ or older, to make gifts of up to $100,000 from a traditional, inherited, inactive SEP, or inactive SIMPLE IRA to qualified public charities, like Ploughshares. QCDs are made directly from the donor’s IRA account by the IRA Trustee and can be excluded from gross income even if the donor does not itemize. QCDs count toward a donor’s required minimum distribution (RMD) when they reach RMD age. By reducing taxable income, QCDs can lower a donor’s tax bill and may help donors avoid Medicare surcharges. And, as IRA QCDs pass tax-free to charity, 100% of your gift can be used by Ploughshares to advance its mission to eliminate the threat of nuclear weapons.
A “Legacy IRA”
A “Legacy IRA” can boost retirement income and provide future support for Ploughshares and our grantees and partners. Many IRA owners, 70 ½ or older, can now make a one-time, lifetime Qualified Charitable Distribution (QCD) of up to $50,000 in exchange for a charitable gift annuity. By using your Required Minimum Distribution to fund a charitable gift annuity, you will receive guaranteed fixed payments for your lifetime. Unlike typical IRA withdrawals, this QCD from your IRA to create a charitable gift annuity is tax-free and will count toward your RMD (for owners of RMD age).
IRA Qualified Charitable Distributions Through Your Estate
As traditional IRAs are taxed differently than other assets, they can become a tax liability when inherited. Designating Ploughshares as a full or partial beneficiary of your IRA, and leaving other, less tax-vulnerable assets to your beneficiaries, can reduce or eliminate this liability. You can name Ploughshares on the beneficiary designation form for your IRA and designate the percentage of your IRA you wish to leave to Ploughshares as a legacy gift.